Why It’s Smart to Use Prepaid Cards for Your Business Expenses
Prepaid Cards
Prepaid cards have been around for decades as a convenient way to spend money.
While they were mainly used by parents and for gift-giving, a new trend is using these prepaid cards for business expenses.
Here are four great reasons that it makes sense to use prepaid cards for your business expenses.
Prevent Major Bank Fraud
When it comes to bank fraud, criminals are getting more inventive than ever before.
It seems like every business deals with a hacker from time to time. Luckily, the implementation of prepaid cards for your business expenses can protect your business.
With each card only having a set amount of money on it, the hacker is limited in what they can obtain from your company.
If they get the prepaid card numbers, you’re only going to lose a small amount of money as compared to your whole business bank account.
Cap Employee Spending
Sometimes employees can start spending business funds willy-nilly when they have access to a debit card to do so.
One of the best things that you can do to ensure that employees don’t spend more than you intend them to is to give them prepaid credit cards.
Each card has a set limit of money on it so employees can’t spend any more.
This is a great alternative for those who aren’t ready to invest in a business spending management solutions just yet.
You Don’t Have to Worry About Getting Cards Returned
When you have rouge employees, it can be terrifying to think about the inside information that they have about your business.
If they have access to your business credit card, then you need to call the bank and get it shutdown.
This can be difficult to do if the bank isn’t open. However, with a prepaid card, you don’t have to worry about the employee stealing a ton of money from your account.
This is because they only have access to the funds on the prepaid card.
No Incorrect Overdraws
Sometimes businesses simply make the wrong withdrawal amount from your business account.
This can result in overdrawing of funds from your account. If your account is low in funds, this can result in unnecessary fees.
In other situations, it will take away money that you plan on using for other expenses.
It can take days to get the money back when an accidental overdraw happens.
Giving businesses a prepaid card number can ensure that they don’t overdraw on the account.
As a business owner, prepaid cards can be a great way to take better control of your business.
If you haven’t used them in the past, hopefully, you’re considering doing so now. We’re sure you’ll enjoy all the benefits that they can provide you.
Category: Business
